Posted 11/24/2023, 4:56:30 AM
Coinbase Soars 225% as Crypto Leader Seeks Revenue Beyond Trading Fees
- Coinbase stock has surged 225% this year, pushing its valuation ahead of the fundamentals of the business
- Revenue highly correlated with crypto trading volumes; efforts underway to diversify revenue streams
- Posted first y/y revenue growth in 3 quarters in Q3 2022 amid cost cutting measures
- Obtained regulatory approvals to offer new products like crypto derivatives and futures
- Current rich valuation of 9x forward sales seems risky given reliance still on trading fees, which can plummet in bear markets